AbbVie Is Already a Dividend King. Here’s Why the $10.9 Billion Apogee Deal Could Make It a Dynasty

AbbVie (ABBV 0.76%) is listed as a Dividend King, but in fairness, it has only been a stand-alone company since it was spun off from Abbott (ABT 0.50%) at the start of 2013. AbbVie hasn’t been around for the 50 years required to qualify as a Dividend King; instead, it has inherited Abbott’s track record. Still, it has increased its dividend annually since the spin-off.

So the real story is what AbbVie has been doing to maintain its place among the Dividend Kings. The most recent answer to that is to agree to buy Apogee Therapeutics (APGE +0.06%). Here’s why that’s so important for the future.

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AbbVie has a strong portfolio, for now

AbbVie has a strong portfolio of drugs. Biologics are a big part of its business, with Humira, Skyrizi, and Rinvoq all notable products. The interesting thing about this trio is that Humira lost patent protection in 2023, leading to a decline in its revenues. But Skyrizi and Rinvoq are newer drugs and helping to pick up the slack. This is how the pharmaceutical sector works: companies like AbbVie are always on the lookout for new drugs to replace older ones that will eventually lose patent protection.

The purchase of Apogee Theraputics brings with it a number of attractive drug candidates. AbbVie highlighted zumilokibart, a late-stage drug for atopic dermatitis, in its release. This is a core therapeutic area for AbbVie. But the release also noted Apogree’s pipeline of drugs in the respiratory space, which could help to build AbbVie’s presence in this area.

Today’s Change

(-0.76%) $-1.89

Current Price

$248.02

Key Data Points

Market Cap

$438BMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.Market cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.

Day’s Range

$245.05 – $251.63

52wk Range

$184.63 – $261.63

Volume

171.8K

Avg Vol

7.2M

Gross Margin

70.58%

Dividend Yield

2.72%

Simply put, this $10.9 billion deal highlights AbbVie’s ability to support its drug pipeline, which is what will allow it to maintain its Dividend King status over time. What’s interesting here, and sets AbbVie apart from most of its competitors, is that the company also makes Botox, which was an acquired product as well. Botox is off-patent, but it has an important brand name in the cosmetic space. That gives the company a consistent revenue stream, which is unusual in the drug space. And it makes Botox a good example of AbbVie’s ability to make strong acquisitions.

Is AbbVie a dynasty in the making?

Some of the world’s best-known drug companies have been in business for over 100 years. AbbVie obviously isn’t at that point yet. However, the Apogee Therapeutics acquisition shows, again, why it can compete with much older drug-makers. With an attractive 2.7% dividend yield, AbbVie is a worthwhile deep dive for conservative dividend lovers who think in decades.